A bike is one of the most precious investments in one’s lifetime. Hence, it is essential to keep it secure with an appropriate bike insurance plan.
With comprehensive bike insurance, you will financially safeguard your bike in case accidents, theft, and loss incurred to natural or man-made calamities. It also covers you against third-party liabilities.
Also, a comprehensive insurance plan allows you to have additional coverage over and above the existing policy. A useful add-on coverage that you should consider buying with your comprehensive plan is the Return to Invoice (RTI) coverage.
What Is RTI Cover?
Return of Invoice (RTI) cover is an optional coverage provided by most insurers in India. With this cover under your name, bridges the gap between the bike’s Insured Declared Value (IDV) and the original cost of the bike at the time of buying. You (the policyholder) has to pay only 10% over and above the existing premium amount.
Advantages of RTI Cover
With this cover, you will be compensated with the entire loss incurred in case of damage or loss to the vehicle. The amount received as compensation is equal to the on-road cost of the bike. Some of the other benefits of RTI cover are as follows –
- RTI cover can be purchased when buying/renewing a comprehensive bike insurance plan
- You (the policyholder) will be compensated with the full amount of the bike (without considering IDV of the bike)
- This add-on cover can be purchased for bikes that are less than three years old
When Is The RTI Applicable?
- RTI cover does not allow you to claim for any minor damage incurred by your vehicle. However, this cover comes in handy when claiming for significant losses arising due to complete damage or loss of your bike.
- If you happen to reside in a theft-prone locality, seeking an RTI cover is a wise decision. It will only make your basic comprehensive coverage plan more reliable. Moreover, if your bike meets with an accident and the damage incurred is beyond repair, you will be compensated with the full cost. In other words, with RTI cover, you will receive the invested on-road price of the bike.
- The depreciation on your bike is 5% for the first 6 months starting from the date of purchase. It then increases to 10% in a year and continues to rise thereafter. This could lead to a large depreciation in the value of the car that is relatively new. Hence, RTI cover is a wise decision for new car owners.
- Note that RTI cover is not offered to bikes that are older than 3 years. This is because vehicles that are older than 3 years have relatively more issues that cannot be ignored during the claim settlement.
- During claim settlement, the insurer might either pay you the entire on-road price of the bike or exclude certain costs such as road tax, registration charges, etc. Your Bajaj bike insurance policy paperwork will give you an in-depth idea of the claim settlement process.
RTI cover can be quite beneficial for those staying in the theft-prone area. Moreover, with this additional coverage, you can financially protect your new bike in case of major accidents and theft-like situation.
